24 May 2021

3 Keys to Making Vendor Managed Inventory (VMI) Work

2021-05-31T20:43:30-04:00May 24th, 2021|Categories: Inventory Management, Lead Time Reduction, Risk Mitigation, Supply Chain Management|Tags: , , , |

The ultimate goal of Vendor Managed Inventory (VMI) is cost reduction. VMI achieves this by better controlling material and information flow. In VMI, the supplier performs the function of planning inventory for the client. The information must be shared between the two parties to allow the supplier to manage a high level of inventory visibility at the client’s location. Rather than the client having to place an order when stock runs low, it is the supplier’s responsibility to…

22 Feb 2021

Tips for Effective Supply Chain Management Contracts

2021-03-01T09:37:05-04:00February 22nd, 2021|Categories: Risk Mitigation, Supply Chain|Tags: , , , |

Cooperation is necessary for any supplier agreement to be successful. However, successful cooperation in supply chain management relies significantly on effective contracts. Supply chain management contracts require clear, guidelines understood and agreed upon by all relevant parties. To create better contracts and manage them well, it’s necessary to carefully consider a few key elements.

25 May 2020

7 Lean Wastes – Inventory

2020-05-26T21:29:25-04:00May 25th, 2020|Categories: Lean Manufacturing|Tags: , , , , , , , , , , , |

While inventory is often thought of as an asset, being one of the 7 wastes suggests that may be wrong-headed. In fact, as a waste, inventory can actually represent tremendous loss. Not only can inventory cost 40 percent or more of its direct cost to carry, it ties up precious cash that could better be used elsewhere in the business. A simple definition of the waste of inventory is any on-hand material other than what is needed right now to satisfy customer demand. Inventory can be categorized in various ways.